Zarubezhneft and Trust Bank closed the deal for the acquisition of majority stake in UNGP
December 21, Moscow. Zarubezhneft is expanding its gas production business. On December 21 Zarubezhneft closed the deal to acquire a 56.16% stake in UNGP from Trust Bank. Trust Bank sells a non-core asset, which was received as debt repayment, at the market price. The deal became a logical continuation of the Memorandum of Strategic Partnership signed in 2019 for the UNGP project.
Zarubezhneft JSC sees expansion of activities abroad as its strategic focus. To increase competitiveness in world markets, systematic work is required to find and test advanced technological solutions in the area of oil and gas production. The projects in the Russian Federation in particular are considered by the company as testing grounds for developing the best solutions for use at the company's foreign assets. In addition, the new asset will become the basis for the development of personnel - professionals in the oil and gas industry, which can later be rotated to other assets of the company around the world.
UNGP owns three license areas in the south of the Orenburg region, where three oil and gas condensate fields have been discovered: Kopanskoye, Chkalovskoye and Berdyanskoye. The fields have been put into production, and the current production is about 200 thousand toe per year (4000 barrels per day).
During the closing of the deal, Zarubezhneft and Trust also signed a Memorandum of Strategic Cooperation aimed at further developing relations between the two companies in the oil and gas industry. The Memorandum implies close contacts between the parties on quality management and improving the efficiency of oil and gas assets of Trust Bank using the technological competencies of Zarubezhneft JSC.
According to the General Director of Zarubuzhneft JSC S.I. Kudryashov, “This deal - the purchase of a non-core asset from the Bank, as well as the signing of the Memorandum of Strategic Cooperation - is a new experience for us, an important step both in terms of expanding our gas business and in terms of developing innovative technologies at the assets in the Russian Federation. We are pleased to expand our cooperation with Trust. I am confident that our effective interaction will continue in the future and will have a positive impact on the business of both companies.”
“For the non-core assets bank, this is the first transaction with oil and gas assets. Our task was not only to sell the company, but also to find an industry-specific investor who will be engaged in the development of the asset. Trust also plans to continue cooperation with Zarubezhneft JC on the management and improvement of the efficiency of the bank's oil and gas assets while using the technological competencies of our colleagues, ”commented Alexander Sokolov, President and Chairman of the Board of the Trust Non-Core Assets Bank.
Zarubezhneft JSC is a Russian oil and gas company of strategic importance having rich history and unique 50-years long experience of external economic activities. Its projects include operations offshore Vietnam in the framework of the joint venture Vietsovpetro, development of fields in the Nenets Autonomous Area in the framework of the joint company RUSVIETPETRO and Kharyaga field PSA, application of technologies for the development of fields in Cuba and activities in the downstream segment in the Republic of Srpska (Bosnia and Herzegovina).
Trust Non-Core Assets Bank is a Russian financial institution with majority state participation, established as part of the activities of the Central Bank of the Russian Federation to rehabilitate the banking system. Founded in July 2018 on the basis of TRUST National Bank (PJSC) by consolidating non-core assets of financial institutions undergoing rehabilitation. The Bank's activities are aimed at efficient asset management with the aim of their recovery, increase in market value and sale at the maximum price.